After losing subscribers, Netflix laid off 300 employees

Netflix is ​​a subscription streaming service that allows its customers to watch series and movies without advertising on an internet-connected device

Netflix laid off 300 employees on Thursday To adjust their accounts after losing the subscribers who were accusing them since the beginning of this year.

This is the company’s second round of layoffs, which In May, it laid off another 150 employees After its shares declined after it admitted to its investors that its growth had stopped.

“We regret we didn’t see our slowdown sooner, so we could have secured a more gradual readjustment of the business”Netflix founders, Reed Hastings and Ted Sarandos, admitted in a letter distributed to employees and compiled by the newspaper The Hollywood Reporter.

According to this method, The cut affects 3% of the company’s workforce worldwide.

Most layoffs, 216, are in US and Canadian offices, while there are 53 in Europe, 30 in Asia and 17 in Latin America.

“We know that these two rounds of layoffs have been very difficult for everyone, causing a lot of anxiety and uncertainty. We plan to return to a normal course of action in the future.‘ reassured the directors.

Despite the bad situation, The company promised that in the next year and a half its workforce could grow again by more than 1,000 new jobsalthough it did not specify which regions would monopolize this growth.

According to the company’s latest earnings report, published in April, Netflix lost 200,000 subscribers during the first quarter of 2022It’s a period in which it netted $1,597 million, down from the 1,706 it made during the first three months of the previous year.

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“Our relatively high household penetration (including the large number of households that share accounts), combined with competition, creates revenue growth difficulties.”to the officials.

Among the new measures it is considering, which will affect consumers, the service could charge extra for sharing an account with other families and start broadcasting ads with the cheapest subscription.

With information from EFE

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Myrtle Frost

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